Theme: Executive Meeting from 14.04.2010

The Executive has set the cost standards for investment objectives financed from public funds

The Executive has set cost standards for investment objectives financed from public funds, Mrs. Elena Udrea, Minister of Regional Development and Tourism has announced at the end of today’s Executive meeting.
Minister Udrea stated that the Interministerial Working Group for setting cost standards has conducted an analysis at the level of the Government, according to which, 15 cost standards were developed for 15 types of works, as follows: "5 at Regional Development and Tourism Ministry, 4 to the Environment Ministry, 3 at the Ministry of Education, 2 at the Ministry of Health and 1 at the Ministry of Agriculture.
The necessity to introduce these cost standards comes in the wake of detection of large differences between the spending of various contracting authorities for the same type of service, Minister of Regional Development and Tourism stated, offering the example of thermal insulation of housing.
Minister Elena Udrea stated that some local authorities have contracted thermal insulation works of housing at the price of 3,000 EUR / apartment, while other authorities have contracted the same type of service at a price of 30,000 EUR/ apartment. "The purpose of establishing these standards is the efficient and effective spending of public money and /.../ need to introduce these standards comes from the analysis that we did in the Government and the Ministry on the large differences in appreciation to which the same types of public works are contracted by various contracting authorities - either the authorities from the central apparatus of the public administration or the various local public authorities " Minister has stated.
Also, Minister of Regional Development and Tourism said these cost standards could regulate the situations encountered in the case of auctions, where many of the offers undervalues or overstate real costs. "Also another objective that we have in mind and another reason why I chose to set public cost standards was the need for an assessment of prices on the work at prices that these objectives are offered for public auction. Often the builders to submit bids are much overstatement or more undervalued. In the case of undervalued very often happens that, according to a strategy many awards to follow any way, then, by subsequent addenda, to increase the price stated in the auction, " Minister Elena Udrea.
Minister Elena Udrea has also stated that these cost standards are not mandatory, but indicative, and they will be considered to substantiate the technical economic indicators of investment objectives, in the evaluation of tenders by the tender committees. Development Minister has expressed hope that “the entrepreneurs, manufacturers who base their offer, which is submitted to tender, should report to these standards. Also, standards will be updated periodically in light of market developments on request of contracting authorities or of Ministries THAT were represented in the inter-ministerial working group.
Minister Udrea stated that there are cost standards at the level of the Ministry for the following types of works: construction of sports halls, cultural centers, youth homes, roads modernization, and there will be introduced other standards for the programme "Revival of Romanian village - 10 houses for specialists”.